2. Topic 1Topic 2Topic 3Topic 4Topic 5 10 20 30 40 50

3. Question 1 - 10 Define Natural Monopoly

4. Answer 1 – 10 Utilities

5. Question 1 - 20 What are illegal agreements on price fixing called?

6. Answer 1 – 20 Colluding

7. Question 1 - 30 How do you compete in a monopolistically competitive market? (The answer is not price)

8. Answer 1 – 30 Product differentiation.

9. Question 1 - 40 What is the most common example of a perfectly competitive market?

10. Answer 1 – 40 Agriculture.

11. Question 1 - 50 List the conditions of perfect competition.

12. Answer 1 – 50 Large markets, same products, no barriers to entry, no profit.

13. Question 2 - 10 What is the market structure called when one person/firm dominates the marketplace?

14. Answer 2 – 10 Monopoly

15. Question 2 - 20 What is it called when a few firms (about 4) dominate the marketplace?

16. Answer 2 – 20 Oligopoly

17. Question 2 - 30 Which market structure has the most competition?

18. Answer 2 – 30 Monopolistically competitive.

19. Question 2 - 40 Which market structure has the most control over price?

20. Answer 2 – 40 Monopoly

21. Question 2 - 50 What are the characteristics of an Oligopoly?

22. Answer 2 – 50 Non-price competition. Similar yet different products. High barriers to entry.

23. Question 3 - 10 Monopolistic competition prides itself on what?

24. Answer 3 – 10 Differentiated products.

25. Question 3 - 20 Which market structure has the largest number of firms trying to sell their product?

26. Answer 3 – 20 Perfect competition.

27. Question 3 - 30 Government laws to protect against monopolies are called _____ Laws.

28. Answer 3 – 30 Anti-Trust

29. Question 3 - 40 What’s the difference between perfect competition and monopolistic competition?

30. Answer 3 – 40 Perfect = Identical Monopolistic = Differentiated

31. Question 3 - 50 What kind of monopoly is it when a monopoly exists based on location?

32. Answer 3 – 50 Geographic

33. Question 4 - 10 Exists when it is more convenient to have 1 or few producers because they have the advantage as far as production techniques.

34. Answer 4 – 10 Economies of scale.

35. Question 4 - 20 Advertising is an example of ___ competition.

36. Answer 4 – 20 Non-price

37. Question 4 - 30 When consumers continue to buy a product regardless of price, the demand is said to be….. Elastic or inelastic?

38. Answer 4 – 30 Inelastic

39. Question 4 - 40 What are the goals of advertising?

40. Answer 4 – 40 Increase demand Make demand more inelastic.

41. Question 4 - 50 What does it take for a market to have price discrimination?

42. Answer 4 – 50 Market power, different varieties of buyers/sellers, resale must be difficult.

43. Question 5 - 10 If people buy less chicken because price increases, demand is said to be A) Elastic B) Inelastic

44. Answer 5 – 10 A

45. Question 5 - 20 What is a horizontal agreement?

46. Answer 5 – 20 Agreement between multiple firms operating on the same level.

47. Question 5 - 30 What is a vertical agreement?

48. Answer 5 – 30 An agreement between firms on various levels.

49. Question 5 - 40 What are examples of non-price competition?

50. Answer 5 – 40 Advertising, location, physical characteristics.

51. Question 5 - 50 What is the difference between productive and allocative efficiency?

52. Answer 5 – 50 Productive – Efficient. Using resources in the least costly way. Allocative – What society needs and wants.